Construction Disrupted Episode 99 - 39bn reasons to learn from mistakes (21.01.26)

We start by exploring the industry’s high note as 2025 wraps up, which may go some way to explaining the £39 billion worth of projects driving growth in 2026. There is a word of caution, though, for the government’s ambitious Northern Powerhouse Rail plan, and we wrap it all up with how innovations like AI and robotics are reshaping the sector (again)! Let's go:

Construction Ends 2025 on High as Analysts Predict ‘Structural Shift’ Due to Data Centre Demand

As 2025 comes to a close, the construction industry is poised for a significant shift, driven by the growing demand for data centres and other infrastructure projects. Analysts predict a "structural shift" in the sector, with data centres becoming a major focus due to the increasing reliance on digital technologies. This trend is expected to drive substantial growth and investment in the industry.

Looking ahead to 2026, Glenigan’s market analysis highlights the Top 100 construction projects set to generate £39 billion worth of work. Civil engineering projects will lead the charge, contributing £23.8 billion across 29 major initiatives. The largest project is the £10.2 billion Lower Thames Crossing in Kent, which includes tunnels and approaches. Other significant projects include the A5 Western Transport Corridor in Northern Ireland (£1.7 billion) and Network Rail’s £1 billion Project Reach for trackside fibre optic cable installation in London.

The office and commercial sector is also rebounding, with 23 projects valued at £6.3 billion, including the £750 million Bidder Street Data Centre in East London and a £700 million British Library extension. The housing sector is set to see 37 projects worth £6.9 billion, with private residential developments leading the way. The largest housing project is a £577 million scheme at Marsh Wall in London.

With projects spanning 10 different sectors, the construction industry is gearing up for a promising year in 2026, with better times ahead for all areas of the industry.

‘Vital that Government Learns Lessons from HS2’: Reaction to Northern Powerhouse Rail Plan

The UK government has announced a £45 billion commitment to the Northern Powerhouse Rail (NPR) project, aiming to transform connectivity across Northern England. The ambitious plan includes a new Birmingham–Manchester rail line and improved east-west links between cities such as Liverpool, Manchester, Leeds, and Newcastle. The project is expected to boost economic growth, create jobs, and improve transport infrastructure in the region.

However, industry leaders stress the importance of learning from the challenges faced during the HS2 project. Key lessons include the need for clear timelines, defined project purposes, and robust funding structures. The Institution of Civil Engineers (ICE) and other stakeholders emphasise the importance of early planning, clear leadership, and stable pipelines to ensure the success of NPR.

The project is set to begin with £1.1 billion allocated for planning, design, and development work during the current Spending Review period. Construction is expected to start in the 2030s, with the project being delivered in phases. Industry leaders are calling for detailed plans,...

Construction Disrupted Episode 98 - Is change destroying construction? (14.01.26)

It's good to be back (Happy New Year everyone). 2026, the year construction builds more than just homes, it's the year for building positivity, one episode, three headlines, two opinions and one takeaway at a time. Let's get to it:

1. Market Forecast: Strong Order Books Drive Tender Inflation as Smaller Firms Struggle

The UK construction industry demonstrated resilience in 2025 despite economic uncertainty. While overall sentiment suggested a slowdown, data revealed that construction output grew faster than services or manufacturing. However, this growth came with challenges:

1. Tender Price Inflation: Tender prices increased by 3.0% in 2025, driven by persistent inflation and subdued demand that failed to yield cost savings.
2. Building Costs: Building costs rose by 3.5%, with significant price hikes in imported materials like wood, aluminium, and electric water heaters.
3. Smaller Firms Struggling: Smaller construction firms faced difficulties due to rising costs and economic pressures, highlighting the need for targeted support to ensure their survival.

In parallel, the Building Safety Regulator (BSR) reported a record year-end performance in processing Gateway 2 building control applications. Key highlights include:

1. A 250% increase in Gateway 2 determinations in the final quarter of 2025 compared to the first quarter.
2. A focus on resolving legacy cases, with 83% of older applications approved.
3. The establishment of an Innovation Unit to streamline approvals for new build applications, achieving results in just 12-13 weeks.

These developments indicate a positive trajectory for the industry, but challenges such as cost inflation and the struggles of smaller firms remain critical issues to address.

2. Fast Homes at Scale: ‘We’ve All the Tools We Need to Solve Homelessness’

The homelessness crisis in London has reached alarming levels, with over 130,000 households in temporary accommodation as of 2025. The cost of housing families in temporary solutions has skyrocketed to nearly £3 billion annually, surpassing the budget for building affordable homes.

Despite the challenges, innovative solutions exist to address this crisis:

1. Modular Construction: Companies like ZED PODS and RSHP have developed modular housing solutions that can be deployed quickly and efficiently. For example, ZED PODS installed 25 zero-carbon homes above a car park in Bromley, retaining most parking spaces below.
2. Prototype Modular Homes: RCKa and Rollalong have created high-quality modular...

Construction Disrupted Episode 97 - 2025: A 2025 Review That Doesn't Mention AI (23.12.25)

In this episode, we take a concise look back at the most significant UK construction news stories of 2025. The projects, policies and pressures that shaped the year. Every item we discuss in this episode has previously featured in our co-host Ryan Jones’s weekly LinkedIn Construction Round-Up, (here's a link to an example - follow Ryan while you're there - well worth it). In fact, most of our headlines come from this each week..

And yes, we do mention AI in this episode, and no, despite everything you may have read this year, AI still hasn’t stolen all our jobs, and it doesn't make the top 3 this year!

So what were the top 3 headlines from 2025?

One year of Labour — are we likely to get Britain building again?

Labour’s first year in government has seen a shift in tone towards housing, with a focus on planning reform and promises to “get Britain building again.” The government aims to deliver 1.5 million homes by 2029, but the next 12 months will be critical in determining whether these reforms translate into tangible results.

Industry leaders are cautiously optimistic, but concerns remain about whether the planning system can overcome delays and bottlenecks to meet ambitious targets.

Colleges halt construction enrolments as demand hits the roof

Colleges are struggling to meet surging demand for construction and engineering courses, with over half reporting waiting lists and some halting enrolments altogether. A demographic surge in young learners and a £600 million government investment to train 60,000 construction workers have overwhelmed college capacity.

Nearly a third of colleges have limited construction apprenticeship starts, raising concerns about the ability to meet the growing demand for skilled workers in the sector.

The case for optimism in construction

Despite economic challenges, there are signs of hope for the UK construction industry. Easing inflation and interest rate cuts are stabilising material costs and improving financing conditions.

The government’s £530 billion infrastructure pipeline, with 780 projects, has sparked cautious optimism, particularly in the commercial property and infrastructure sectors. Increased commercial lending and temporary vacancies in construction suggest developers are preparing for new projects, but industry leaders stress the need for government action to address regulatory delays and funding uncertainties.

Bios

Ryan Jones - SLG Agency

For almost 20 years, Ryan’s focus has been on helping brands in the construction and manufacturing sectors tell their story.

His career began in PR, working for global businesses across a variety of sectors, before opting to focus on construction and the built environment.

In his role as Managing Director, Ryan works to ensure that SLG...